Shares to continue to correct in near future

A steel production line at Hòa Phát Hải Dương Steel Joint Stock Company. Hoà Phát Group (HPG) decreased 8.9 per cent last week. — VNA/VNS Photo Danh Lam

HÀ NỘI —Market analysts forecast that the VN-Index will continue to be hampered and face the risk of weakening again in the short term.

On the Hồ Chí Minh Stock Exchange (HoSE), the VN-Index lost 1.56 per cent to end at 1,217.30 points.

The index had lost 5.2 per cent last week.

An average of 656.5 million shares were traded on the southern market during each session last week, worth VNĐ16.3 trillion (US$701.7 million).

“Although VN-Index continued to be supported from below 1,200 points and bounced back, in general, the market was still in a weakening movement and continued to form a falling gap,” said Việt Dragon Securities Co.

“Liquidity increased compared to the previous session, but it’s still not possible to conclude that the cash flow will increase, as today’s liquidity is fueled by the restructuring activities of ETFs.

“It’s expected that the market will re-test supply and demand in the gap area of 1,220 – 1,230 points, however, it’s worth noting that large selling pressure is still hidden in this area.

“Therefore, investors should still be cautious and limit new purchases, taking profits and restructure the portfolio in the direction of minimising risks.

“Following the recovery at the end of the previous session, VN-Index continued to increase. However, in general, the market’s sentiment is still cautious as the index re-tested resistant level of 1,240 – 1,250 points.

“With this cautious move, it is likely that VN-Index will continue to be hampered and face the risk of weakening again. Therefore, investors should consider taking profit and restructure portfolios in the direction of minimising risks,” the company said.

According to Bảo Việt Securities Co, risk management and stock exposure control should still be prioritised in this period.

“In addition, the market is likely to have strong swings in the coming sessions. Therefore, investors with high stock exposure should still take advantage of the market’s rallies to sell and reduce exposure,” said Trần Xuân Bách, a stock analyst at Bảo Việt Securities Co (BVSC).

“VN-Index surged to 1,236.63 points after successfully testing the support zone of 1,180-1,200 points for the second time in the previous session. However, the index remains under correction pressure and may test the aforementioned support zone again in the last session of the week.

“At the same time, we also pay attention to the negative scenario that the index may retreat to test the 1,150-1,160-point zone if it violates the 1,200-point zone.

“In general, the market’s ability to recover in the short term is highly probable, even in the scenario where the market retreats to the range of 1,150-1,160 points.

“However, the market may still experience strong correction in the last session of the week when the ETF’s portfolio restructuring takes place. Market movements will be more balanced and stable this week,” it said.

According to Mirae Asset Securities Vietnam, VN-Index was following the negative movements of the world market. If the 1,200-point threshold is penetrated, there is a risk that VN-Index will form a downtrend in short, medium and long term.

Community utility stocks rose the most in the past week thanks to the strong increase of stocks such as Petro Vietnam Gas JSC (GAS), increasing by 12.9 per cent, PVPower (POW) up by 9.9 per cent, Thủ Dầu Một Water JSC (TDM) gaining by 5.2 per cent, and Biwase (BWE) increasing by 1.7 per cent.

It was followed by information technology stocks thanks to its pillar in the group, which is FPT Corporation (FPT), up 1.2 per cent.

The remaining industries all experienced a sharp decline. Construction materials stocks fell the most with Hoà Phát Group (HPG) decreasing 8.9 per cent, Nam Kim Group (NKG) down 23.9 per cent and Hoà Sen Group (HSG) decreasing 26.8 per cent.

Stocks in the banking group also lost ground, creating great pressure on the market. Accordingly, Vietcombank (VCB) decreased by 2.1 per cent, Bank for Investment and Development (BID), decreased by 6.5 per cent, Asia Commercial Bank (ACB), dropped by 8.3 per cent, Techcombank (TCB), decreased by 9.1 per cent, Saigon-Hanoi Bank (SHB) was down by 9.4 per cent, Vpbank (VPB) decreased by 9.7 per cent, Vietinbank (CTG) was down by 13.1 per cent and Military Bank (MBB) fell 15.3 per cent. VNS